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LETTER 



TO 



JAMES MONROE, ESQ. 

President of the United States, 



ON THE 






STATE OF THE COUNTRY: 

WITH A PLAN 
FOE IMPROVING THE CONDITION OF SOCIETY. 

Bt JOHN- MELISH. 






PHILABELPHIAj 

PUBLISHED BY JOHN MELISH, GEOGRAPHER fiif MAP PUBLISHEBi 
NO. 121, CHESNUT STREET. 

Jan. 1, 1820, 



,t- 



<^ 






1 



PREFACE. 



THE author of the following letter has been induced to pay 
great attention to the state of the country, particularly as relates 
to its foreign relations, in consequence of certain improvements 
necessary to be made in his literary and topographical works. 

From every view which he could take of the state of society 
generally since the last peace, he has been impressed with the 
belief that foreign commerce would be very limited and preca- 
rious for some time ; and he considered that it would be sound 
policy to '■'■protect and encourage our internal industry, ^^ as the 
only means of making us an independent and prosperous nation. 
These sentiments were communicated to the public, in a letter 
addressed to the President of the United States, two years ago. 

He is now of opinion that we have reached A crisis, and a 
change must take place, either by legislation or the force of cir- 
cumstances. The present is therefore judged a favourable period 
for taking a new view of the subject, which is done in the follow- 
ing pages, and it is most respectfully submitted to the conside- 
ration of the President of the United States and constituted au- 
thorities of the country ; and to his fellow citizens generally. 

In order to form data whereon to ground the calculations, it 
became necessary to make an estimate of the exports and im- 
ports since the peace. This was a work of great labour and dif- 
ficulty, particularly as relates to the imports. It is observed that 
the same difficulty occurred to the Committee on Commerce and 
Manufactures in the Senate of the United States, who have 
made a very elaborate report on the subject, presenting some 
new views which the author has availed himself of ; and as the 
subject is exceedingly interesting, as connected with the present 
enquiry, a new view is taken of it in the appendix. 



IV PREFACE. 

The former letter has been frequently referred to in this, an, 
as it is believed that the views presented in that letter are gentJ 
rally sound, some additional reasoning founded upon it is intrc 
duced in the appendix, and some errors are corrected. 

That the whole may be useful to the country is the earnes 
wish of 

THE AUTHOR. 






TO 



JAMES MONROE, Esq. 

President of the United States, 



Sir, 



DEEPLY impressed with a sense of the injuries inflicted 
upon this country through the medium of an overstrained foreign 
commerce, I took the liberty to convey my sentiments to the 
public, in a letter addressed to you, bearing date the 12th January, 
1818. To that letter I beg leave respectfully to refer. 

About the same time numerous memorials were sent to Con- 
gress, and the subject occupied the attention of the legislature 
during part of that session. Some little alteration was made in 
the tariff, and some important regulations were adopted to guard 
against fraud ; but it clearly appears by subsequent circumstances 
that the protection afforded to American industry was wholly 
insufficient to secure to it the use of the American market. In- 
deed, it is apprehended, that it was not clearly seen, even by the 
greater part of those engaged in manufactures, that unless the 
protection was sufficient to secure to American industry the free 
use of its own market^ it would be impossible to extend the ma- 
nufacturing system, or even to sustain that portion of it which 
was then in operation. In the letter referred to, 50 per cent, was 
assumed as the basis of an efficient protecting duty j but the 
general sense of the country seemed to be that duties equal to 
half that amount, or 25 per cent., would be sufficient. The duty 
upon the great leading articles of imports being made permanent 
at that rate, it was then thought, by many, that if manufactures 
did not flourish, they ought to fall. We have had this system 
in operation nearly two years longer. Manufactures have not 
flourished— and the question now is — must they fall ? 

B 



I am encouraged to enter again upon the discussion of this 
question, in consequence of the notice taken of the subject in 
your late Message to Congress. 

" It is deemed of great importance to give encouragement to our domestic manufac- 
tures. In what manner the evils adverted to may be remedied, and how far it may be 
practicable, in other respects, to afford them further encouragement, pnying due regard 
to all the other great interests of the nation, is submitted to the wisdom of Congress." 

I'he Secretary of the Treasury again brings it before Congress 
in the Annual Treasury Report. 

" Sliould an increase of the revenue be deemed expedient, a portion of the deficit may 
be supplied by an addition to the duties now imposed upon various articles of foreign mer- 
cliandise, and by a reasonable duty upon sales at public auction. Should Congress deem, 
it expedient to modify the present rate of duties, with a view to afford that protection to 
our cotton, woollen, and iron manufactures, which is necessary to secure them the do- 
mestic market, &c. 

" It is believed that the present is a favourable moment for affording efficient protection 
to that increasing and important interest, if it can be done consistently -with the general 
interest of the nation." 

A just view is then taken of some of the beneficial effects that 
would result from efficient aid being given to manufacturing in- 
dustry, as follows : 

*' The situation of the countries from whence our foreign manufactures have been 
principally drawn, authorises the expectation, that in theevent of a monopoly of the home 
mai-ket being secured to our cotton and woollen manufactures, a considerable portion of 
the manufacturing skill and industly of those countries will be promptly transferred to 
the United States, and incorporated with the domestic capital of the Union." 

We have now decisive evidence that the government of the 
country is in favour of giving efficient aid to manufacturing in- 
dustry, provided it can be done consistently with the other great 
interests of the nation. 

Two questions then occur — 

First. What are the other great interests of the nation ? 

Secondly. Can efficient aid be given to manufactures consistent 
with these interests ? 

In answer to the first question — The other great interests of 
the nation are — Agriculture., Commerce., the Arts and Sciences — 
and the finances of the countrij. 

In answer to the second — There is no doubt in my mind, that 
efficient aid can be given to manufactures, not only consistent 
with due attention to the other great interests of the nation, 
but that these interests will suffer just in proportion as we ne- 
glect to protect manufacturing industry. It may be of import- 
ance to go into the proof of the latter part of this assertion. 



In what state are the other great interests of the nation ? 
Agriculture in a very depressed state ! Commerce nearly anni- 
hilated ! The Arts and Sciences hid in the shade of national 
distress ! In the estimate of the fiscal transactions of the country 
for 1820, a deficiency of five millions of dollars ! ! 

What has brought about all this ? We have had profound 
peace. We have had good seasons. We have had, for a great 
part of the time, a very high price for our produce. We have 
had the utmost freedom, guaranteed to us by the best form of 
government in the world ! Why then are we at a loss ? Why in 
a state of suffering ? The plain answer is — In consequence of 
our neglecting to protect manufacturing industry. At the period 
of the peace, we committed a species of national suicide. When 
we should have raised our tariff, we lowered it ; and thereby 
surrendered up our market to foreign manufacturers, when a 
double guard should have been planted to secure it to our own 
citizens ; and now the evil day is come upon us. We cannot go 
back and repair the mischief that has been done ; but we may 
look back^ and after taking a view, step by step, of the ravages 
that have been made, we may gather wisdom from experience, 
and shield ourselves against future evils. 

As a text to this review, we shall quote a passage from page 
14, of the former letter. 

" Let U9 begin by taking a vie w of these impoiits and i xports that bear upon the sub- 
ject. These are — Dry Goods from Britain, and raw inatenals and provisions to Britain. 
(It might have been added — and cotton goods Irora Asia, and specie to Asia.) The whole 
evil rests in this exchange. We receive from Britain (and Asia) articles which we can 
make for ourselves, and a vast portion of our people arc kept in idleness because lue don'i 
vmke them. We give them in exchange the very means of making these very articles 
wliich we can make ourselves ; but this is not all : We arc mortgaging our future industry 
to them (the Bi'itish) at the rate of twenty or thirty n»illioiis a year. By and bye, should 
the system continue, this must be exliausted, and we will not be able to pay. We will 
then be branded as an immoral people, for not doing what we will be utterly unable to^-, 
do." ^ 

There are few citizens in America, particularly in or about 
our large cities, who cannot feelingly appreciate the effects of 
the loss of the industry of themselves, or their neighbours; and 
the following table of imports and exports will present a vivid 
picture of the cause of the loss of past and present industry, as 
well as of the mortgage on our future industry. 



Teai'S. 

1815 

1816 

1817 

1818 

1819 estimated 


Imports. 
gll8,9l4,110 

60,569,766 
73,516,141 
94,477,172 
79,280,000 

§426,757,189 


Years. 
1815 
1816 
1817 
1818 
1819 

Balance 


Exports. 

R4..,y74 03 
6.,;84 S95 
6S o58.ti69 
7.i.854 437 
50,076,838 




§.(03,952,643 
§122,804,546 



The different classes of goods imported, on which duties ac- 
tually accrue, from the years 1815 to 1819 inclusive, are exhi- 
bited in the following table. 



A 



Years. 


Goods pay- 
ing ad vai. 
duties. 


Wines, Spirits, 

Molasses, Teas, 

Coffee, Sugar, 

Salt. 


All other 
articles. 


Total. 


1815 
1816 
1817 
1818 
1819 


88,914,910 

22,462,766 
41,816,141 
58,795,574 
49,000,000 


25,000,000 
28,200,000 
25,100,000 
26,838,298 
23,600,000 


8,000,000 
9,900,000 
6,600,600 
8,843,300 
6,680,000 


118,914.110 
60,569,766 
73,516,141 
94,477,172 
79,280,000 


257,9'.'5,591 


128,738,298 


40,023.300 


426.757.189 



Remarks on the above Tables. 

In the tables of imports, the goods re-exported are not in- 
cluded, the estimate being made up from the duties actually paid 
into the Treasury. The estimate for 1819 is formed from the 
estimate of the Revenue for that year in the Secretary's Report. 
The table of exports exhibits the value of domestic produc- 
tions only. 

Of the articles imported, nearly 258 millions are goods paying 
ad valorem duties, of which we could have made nine-tenths 
ourselves, and of the remainder we could have made at least 50 
millions worth more. Here then is the picture of the mode by 
which we have been deprived of the exercise of our industry. 
Here are articles amounting to more than 300 millions of dol- 
lars, which we could have made ourselves, imported from 
foreigners, while a vast portion of our citizens have been kept 
in idleness, and have latterly been reduced to poverty and want, 
because we have not made them ; and here we see a balance of 
more than 120 millions of dollars, for a considerable portion of 
which o\ir future industry is mortgaged; and another portion is 
lost for ever, partly to our own merchants and partly to those 
who furnished the articles ; part of the latter in a way not very 
creditable to us, although the furnishers of the goods^iave ge- 






(^J {yc^^c^'^t-^ 



nerally pursued the trade with an avidity which gives them 
no right to complain. 

Having taken this retrospective view, we shall now look for- 
ward at what ought to be done for the future. It is presumed, 
that we must either do something efficient by legislation^ or 
something will be done for us by the force of circumstances that 
will greatly add to our already embarrassed situation. As a 
text to this inquiry, I beg leave again to resort to the aforesaid 
letter, page 12. 

"The whole surplus of our national stock has gone to England, and this will of course 
cause an annual drain of specie to follow the stock. The whole surplus of our national 
bank stock has gone to England, and the dividends must follow of course. But this is not 
all. The exchange is still against us, and will operate to drain off the surplus capital of 
ipecie. And what then? Why then, indeed, we will be, to use the sailor phrase, 
brought up, and the evil will in process of time cure itself, but it will be through a course 
of suffering and sorrow distressing to contemplate." 

Again, page 20. 

« America has been importing goods to the extent of 80,000,000 dollars, and export- 
ing to the extent of 55,000,000 dollars, for three years past. The balance against her at 
the present time, in consequence, is 75,000,000 dollars.* This may be augmented, per- 
haps, to 100,000,000 dollars. Further than that it probably won't go, because it will ex- 
haust all our means and all our credit. Two-thirds of our means consisting of national 
stock and bank stock, are already exhausted. Then comes the specie. Then we can 
run our credit, perhaps, for another year. At the end of that period it must yield to the 
pressure ; and then" — Here follows a string of calculatious. 

The remedy for the evil was pointed out in page 1 3. 

" The means of giving active employment to the inhabitants is only to be found in the 
general establishment of manufactures, and to secure this important measure nothing 
more is wanted but for the Congress of the United States — 

•«To lay on duties sufficiently high to protect them. 

" To devise a system of laws to guard against smuggling and fraud. 

" And to hold forth a sufficient guarantee to encourage the manufacturers to perse- 
vere till the system is brought to maturity." 

The subject was taken up by Congress, as already noticed, 
and operated upon to an extent that was pretty generally be- 
lieved to be adequate to afford sufficient protection ; but after two 
years experience, it is found that we have run more deeply in 
debt to foreign nations, and our manufacturing industry is more 
depressed than ever. It is presumed that we have now reached 
a Crisis, and change the system we must. Having exhaust- 

• The average imports of these three years, estimated from the official 

returns now received , amounts to - - " " S 84,.'533,339 

The average exports, by the same, amounts to _ - . 56,334,756 

And the aggregate balance against the United States, amounts to 8,?, 885, 649 

So that the estimate vas considerably under-raled. 



I 



10 



ed all our surplus wealth, and run our credit as lar as it will 
probably go, to procure foreign commodities ; we may now lav 
our account to be restricted in the use of them, within our 
means of paying for them. To have a clear view of this part 
of the subject, we may look at what these means will probably 
consist of hereafter ; and to what extent. 

We export certain articles, principally provisions and raw ma- 
terials, to foreign countries. The average amount in five years 
has been under 61 millions of dollars annually. During part of 
that period we have had uncommonly high prices for our pro- 
duce, particularly cotton, wheat, rice, flour, and tobacco. Now 
we are very much restricted in the use of foreign markets, and 
every article has found its level, or is in a depressed state. It is 
believed, that the exports for a series of years to come will not 
average more than 50,000,000 dollars. 

The reasoning in this letter, as to future imports, being very 
much influenced by the question as to the extent of our exports, 
the following table is inserted, exhibiting the exports for five 
years, and in the last column there is an estimate for 1820, which 
makes the amount only 46,640,000 dollars ; but it is believed they 
will rise in future years, particularly in the article of manufac- 
tures, we therefore assume 50,000,000 dollars as a datum to 
guide our inquiries. 

It will be observed, that the Table exhibits the value of domes- 
tic produce only. 

Table of Exports from 1815 to 1819^ inclusive^ with an Estimate 

for 1820. 













Estimate 


From what source. 


1815. 


1816. 


1817. 


1818. 


1819. IS'^O. 


Tlie sea. 


912,000 


1,331,000 


1,671,000 


2,187,000 


2,024,000 i;,ooo,ooo' 


The forest, 


3,900,000 


6,740.0*30 


6,484,000 


5,691,000 


4,927,000 5,0(X),000 


Animals, 


1,332,000 


1,320,000 


2,069,000 


1,936,000 


2,025,000 


2,000,000 


Wlieat flour and 'i 
biscuit - 3 


7,209,000 


7,712,000 


18,432,000 


12,463,000 


6,415,000 


7,000,000 


Indian corn£i? meal 


1,140,000 


l,f)4G,000 


1,329,000 


2,335,000 


1,424,000 


1.500 000 


lij e and meal. 






627,000 


640,000 


296,000 


400,001) 


llice, 


2,785,000 


3,555,000 


2,379,000 


3,.:fi:;,ooo 


2,143,000 


2,500,000 


Otlier kinds of grain 


100,000 


238.000 


187,000 


347,000 


195,000 


200,000 


Toljacco, 


8,235,000 


12,809,00'! 


9,230,000 


9.f<"r,ooo 


7,637,000 


7,000,000 


CoUon,S. I. 


2,619,000 


4,653,00; 


3,2 il ,000 


3,810,000 


3.370,000 


3,000,000 


Olhei- kinds, 


14,909,000 


19,433,00'J 


19,387,000 


27,524.00; 1 


17,712,000 


13,000,000 


Oilier products, 


478,000 


M96/)0.' 


341,000 


712,00). 


235 ,000 


400,000 


Maiiul';ielures, 


1,553,000 


l,755,00'i 


■2,202,000 


2,439,001 ■ 


1 ,9 i 4, 000 


2,000,000 


Uncertain, 


791,000 


1,049,000 


734,000 


640,000 


630,000 


645,000 


i:.,974,403 


64,782,000 


r)S,31 3,000 


73,S54,i3; 


50,976,838 46,640,000) 



J/ li'T^' Crt^ 



11 



1815 - 

1816 - 

1817 - 

1818 - 

1819 - 



C^otton exported. 


lbs. 


Value. 


Sea Island, 


8,449,951 


31 ceiittr. 


Other kinds, 


74,548,7^6 


20 


Sea Island, 


9,900,326 


47 


Othei' kinds. 


72,046,790 


27 


Sea Island, 


8,101,000 


40 


Other kinds, 


77,547,000 


25 


Sea Island, 


6,157,335 


59 


Other kinds, 


86,918,843 


33 


Sea Island, 


7,485,775 


46 


Other kinds. 


80,508,270 


22 


1 presumed that we 


are indebted to 




nations, at least 


- 


S 50,000,000 



For which we will have to pay an an- 
nual interest of - - S 3,000,000 

And allow as a sinking fund, to pay 

off the principal - - 2,000,000 



The two items will have to be paid out of the 

proceeds of our produce _ - . 5,000,000 



Leaving a fund for imported goods of - S 45,000,000 

Now, there are certain articles, partly of necessity, and partly 
of luxury, but rendered necessary by habit, that we either do 
not raise ourselves, or not in sufficient quantity to supply the 
demand, and these we must continue to import. We shall take 
a view of the most prominent of these articles, classing them into 
three divisions. 

1. Wines, Spirits, Molasses, Teas, Coffee, Sugar, and Salt. 

2. Cocoa and Chocolate, Oils, Fruits, Spices, Drugs and Coal. 

3. Gums, Watches, Tin-sheets, Colours, Dye-stuffs, and Ja- 
panned and Plated wares. 

These articles will amount to a considerable sum, under anv 
modification of the tariff. 

It is presumed, that those marked No. 1. will exceed 
S 24,000,000, and Nos. 2, and 3. will probably be about 
B 4,000,000, leaving only S 17,000,000 to pay for other manu- 
factures. If these statements be at all correct, it follows, that 
we must hereafter make a very considerable portion of those 



12 

manufactures for ourselves, which we heretofore imported. 
The average imports of the goods corresponding to those for 
which the above jg 1 7,000,000 is appropriated, amounts to up- 
wards of 5S 53,000,000 annually ; and the proofs are pretty deci- 
sive, that we must make all that portion of them which exceeds 
$ 1 7,000,000, or go without them. This leads again to a view 
of the grand question. Can e^cient protection be afforded to do- 
mestic manufactures^ consistently with the general interest of 
the nation ? This question has been decisively answered in the 
affirmative, and we may now add, that it is believed and respect- 
fully submitted, that in addition to this circumstance, the tariff 
can be so modified as to secure the greatest blessings to the na- 
tion, particularly in the following very essential points. 

1st. To prevent us from running further into debt. 

2d. To protect and encourage every branch of national in- 
dustry. 

3d. To raise a sufficient revenue, without the necessity of re- 
sorting to internal taxes. 

Under this persuasion, the following view, and modification of 
the tariff, is respectfully submitted for consideration. 

The Report of the Secretary of the Treasury presents a very 
accurate statement of the imports of 1818, and is assumed as a 
datum whereon to ground the calculations. 

In 1818, the Wines imported amounted to 1,663,482 gallons, 
valued at §1,104,952. The duty averaged 37-9 per gall, and 
amounted to §630,181. By raising the tariff, so as to average 
60cts. per gall, it is believed the importation would not be 
diminished, while the revenue raised would be §998,000. 

The Spirits imported amounted to 6,052,453 gallons, valued 
at §5,616,676. The duty averaged 43*7 per gall, and amounted 
to §2,646,187. By raising the duty to average 70 cts. per gall, 
it is believed the quantity would be reduced to about 4,000,000 
gallons, value § 3,744,000, and the revenue would be §2,800,000. 
The Molasses imported amounted to 12,315,000 gallons, va- 
lued at §6,157,511. The duty was 5 cts. per gall, and amount- 
ed to §615,751. By raising the duty to 8 cts. it is believed the 
quantity would be reduced about one-fifth part, amounting to 
§4,915,000, and the revenue would be about §640,000. 

The Teas imported amounted to 4,842,963 lbs. valued at 
§3,849,241. The duty averaged 31-6 per. lb. and produced 



J3 

g 1,531,^49. By raising the duty so as to average 50cts. it is 
believed the quantity would not be diminished, and the revenue 
raised would be §2,421,845. 

The Coffee imported amounted to 19,199,403 lbs. valued at 
jS2, 867,910. The duty was 5 cts. per lb. and the amount was 
jg 959,970. By raising the duty to 8 cts. it is believed the quan- 
tity imported would not be materially reduced, and the revenue 
would be about g 1,520,000. 

The Sugar imported amounted to 51,284,983 lbs. valued at 
IS 6,003,430. The duty averaged 3-06 per lb. and produced 
§1,568,892. By raising the duty to average 5 cts. per lb. the 
quantity would not be greatly, if at all, reduced, and the reve- 
nue would be S 2,550,000. 

The quantity oi Salt imported amounted to 2,752,396 bushels, 
and is valued at g 1,238,578. The duty was 20 cts. per bushel, 
amounting to S 550,479. By raising the duty to 40 cts. it is be- 
lieved the quantity would not be materially reduced, and the re- 
venue raised would be about g 1,080,000. 

The whole of the other articles paying specific duties are va- 
lued at S8,843,900, and produced a revenue of §1,591,701. 
By raising the duties so as to be double on an average, the quan- 
tity would probably be reduced one-half, and the revenue would 
be the same as in 1818. 

On these articles we may remark, that Hemp^ and manufac- 
tures of Hemp^ Sheetings Beer^ Oil^ Soap, Cheese, Ta/iozv, 
Lead, and mamfactures of Lead, Cordage, Copper rods, &c. 
Iron and Steel, and 'mamfactures of these articles. Wire, Glass, 
Boots, Shoes and Slippers, and Playing Cards ought to be sub- 
ject to a pretty high duty. Cotton and Tobacco ought to be pro- 
hibited. Alum, Coal, Copperas, &c. may, perhaps, be continued 
as they are. 

The articles paying 7h. per cent, ad valorem, amounted to 
§2,387,693, and produced §179,760. By raising the duty to 50 
per cent, the quantity would probably be reduced one-half, and 
the residue would yield above § 700,000. 

N.B. Such articles of Gums and Drugs, as we cannot manu- 
factui'e ourselves, may perhaps be continued as they are, or go 
free. The other articles being all luxuries will easily bear 50 
per cent, ad valorem. 

The articles paying 15 per cent, ad valorem, amounted to 

c 



14 

$19,445,529, and produced §2,916,828. By raising the duty 
to 50 per cent, ad val. the amount would probably be reduced; 
one-half, and the revenue would be §5,350,000. 

The articles paying 20 per cent, ad valorem amounted to 
S 9,524,531, and the revenue was §1,901,906. By raising the 
duty to 50 per cent, the quantity would probably be reduced 1 
one-half, and the revenue would be §2,590,500. ; 

The articles paying 25 per cent, amounted to §24,804,188,. 
and the duty to §6,201,049. By raising the duties to 50 per 
cent, the quantity would probably be diminished to §12,000,000, 
which would produce §6,600,000. 

The articles paying 30 per cent, ad valorem, amounted to 
§2,633,637, and yielded §790,091, By raising the duty to 50^ 
per cent, the amount would probably be reduced to §1,000,000,, 
and the revenue would be about g 550,000. 

The following table exhibits the aggregate of imports and 
duties in 1818, and an estimate of the gross imports and duties 
predicated upon the foregoing plan for the modification of the 
tariff. 



Aggregate Imports and Duties, 1818. 


Suppose! 

<kitif-s 


"gg''egate imports and 
pit- inodifit .; tai-iff. 


Articles. 


Amount. 


Kate of Anioit'U of 
duty. ! duty. 


Amount. 


Ital. Oi 
duty. 


Ai.iojiit of 
iluty. 


Wines, 


i.ioi.gs^ 


37.9 


630,181 


1,105,000 


60 


99S_OUi> 


Spirits, 


5,616,6-6 


43.7 


2,646,187 1 


3,744,000 


70 


2,800 ,ono 


Molasses, 


6,157,.'>ll 


5 


615,751 


4,915,000 


8 


640,00'j 


Teas, . . 


3,849,241 


31.6 


1,531,749 


3,849,241 


50 


2,421,845 


Coffee, . 


2,867,910 


5 


959,970 


2,867,910 


8 


1,520,000 


Suqar, 


6,003,4.S0 


3.06 


1,568,892 


6,003,430 


5 


2,5.'i(),000 


Salt, . . 


1,258,578 


20 


550,479 


1,238,578 


40 


1,080,000 


Other articles 


8,843,300 


per cent. 


1,.S9I,701 


4,422.000 


per cent. 


1,591,701 


Ad valorem. 


2,387,593 


7 1-2 


179,760 


1,193,800 


50 


700.000 




19,445,529 


15 


2,916,828 


9,722,000 


50 


5,350,000 




9,.S24,531 


20 


1,901,906 


4,76'2,()00 


50 


2,590,000 




24,804.188 


25 


6,201,049 


12,000 000 


50 


6,600,000 




2,633,637 


30 


790,091 


1,000,000 


50 
Cross 


550,000 


Nett amount 


§94,477,176 


22,084,544 


56,822,959 


29,391,546 


Estimated g 


ros3 importations 


§56,822.9.^9— D 


uties, 




29 ,.391, 546 


Suppose to b 


e exported, 


11, 


882,959— Di 


■awback, de( 


luct. 5 p. c 


t. 5,685,000 



Net revenue. 



23,706,546 



Should the foregoing plan be adopted, there will be no diffi- 
:ulty, on a net importation of 45,000,000 dollars, to raise a re- 



15 

venue of 23,706,546 

Then, to ascertain the net customs, add — 

Extra duty on foreign vessels raised to 20 
per cent., provided it can be done con- 
sistently with existing treaties, suppose S 500,000 

Interest and storage, 100,000 ■ 

Tonnage, supposed to be augmented by the 

new regulations, 400,000 

Light money, 50,000 

1,050,000 



24,656,546 
Deduct expenses of collection, suppose 756,546 

Leaving a nett revenue of ^24,000,000 

The next object is to secure this revenue and have it promptly 
collected. The best mode will be to make the duties payable in 
cash, on delivery of the goods. But in order to accommodate 
the merchants, the goods may be allowed to lie in bond for a 
reasonable time ; and the importers may, if it suits their conve- 
niency, sell them in bond. 

Lastly, connected with this subject, we may notice, that in 
order to secure both the American manufacturer and trader in 
the use of their own market, there should be a reasonable duty 
imposed upon all sales at public auction. The revenue to be 
raised from this source may be assumed at 500,000 dollars. 

Though not immediately connected with the main object of 
this letter, we may notice another subject as connected with the 
finances of the country, — that is. The Public Lands. It would 
be of great importance to repress speculation in these lands, as 
much as possible ; and to be able to calculate with some degree 
of certainty upon the annual revenue to be received from them. 
To accomplish these objects, all public sales should be payable 
in cash, and to encourage the poorer class of settlers, the land 
laws might admit of the sections being divided, where deemed 
expedient, into eight parts. The plan of giving credit to actual 
settlers is judicious, but no credit should be given to such as 
buy the land on speculation. Under judicious management, a 
permanent revenue may be reckoned upon from this source, 
equal to 3,000,000 dollars. 



16 

Another subject of revenue is the Bank of the United States;, 
but it is believed that no advantage can be derived from it, either 
of a public or private nature, unless efficient protection is afford- 
ed to national industry. Foreign commerce is very limited ani 
unproductive ; and internal speculation has played its card. No 
reasonable hope can therefore be entertained of the resuscitationjl 
of the affairs of the bank, unless a well organised system of in- 1 
ternal industry be adopted, so as to give active and safe employ- 
ment to its capital. 

We may now recapitulate the various sources of revenue. 
Customs per statement, - - - S24,000,000) 

Duty on sales at auction, - . . 500,000) 

Public lands, - - - - - 3,000,000 

Bank dividends at present not reckoned upon, 0,000,000 






§27,500,000 

This sum, it is believed, can be easily raised without having 
recourse to intei-nal taxes ; and it is presumed it would be suffi- 
cient for all the fiscal transactions of the government, including 
a sum for the gradual increase of the navy, and another for a 
gradual reduction of the national debt. 

Should these, or similar regulations be adopted, so as to give 
practical effect to a general system of national industry, then is 
the foundation laid for a period of prosperity and comfort in the 
United States, unexampled, probably, in the annals of the world. 

In the mean time, all classes of the community seem to feel 
the effects resulting from the loss of our industry, and conse- 
quent national distress, and various plans are agitated for re- 
lieving it. The only efficient plan, in my opinion, will be such a 
modification of the tariff as will secure to manufacturing indus- 
try the use of its own market. Without that, all others will be 
mere palliatives, calculated rather to prolong the disorder, than 
to cure it. 

A favourite plan, now in discussion, seems to be a national 
paper circulating medium ; and having given an opinion upon so 
many topics in this letter, I shall respectfully submit an opinion 
upon that also. 

I have always been of opinion that a paper circulating medium, 
under proper regulations, is very beneficial to society ; that the 
government of the country should have the controuling power 



17 

over it ; and that the profits arising from it should of Y\ghi_he- 
long to the co mmu nity at la rge. I am clearly of opinion that i 
such are the resources within the power of the government of 
the United States, that they might with the greatest propriety, I 
and advantage to the public, convert a considerable portion of 
their public debt into treasvuy notes, bearing no interest, and 
that these might be emitted under such regulations, and with 
such security for their payment, that, in the event of a deficiency 
at any time of the precious metals, the banking institutions might / 
be allowed to pay their notes either in national paper or specie, j 
The right to do all this is clearly inherent in the government of ) 
the United States. The next question is, as to the expediency j 
of the exercise of that right at the pre'sent time. / 

I have already stated, in substance, that no plan will be ade-N 
quate to relieve the present embarrassments unless means are ^ 
adopted to give efficient protection to manufacturing industry. 
If that is dohe, then a national circulating medium might get a 
fair trial. The experiment may be tried with perfect safety, and 
with considerable advantage, in this way. 

1. Let the amount to be issued be limited^ so as 7iot to exceed 
one year's revenue^ and be receivable in all payments to the Uni- 
ted States. The ways and means for its redemption being thus 
provided for within the year, it cannot depreciate. 

2. Let the plates, paper, and printing, be of the most exquisite 
kind, such as can be furnished by artists within the United States, 
and the paper cannot be counterfeited. 

3. Let the figure and denomination of the notes be such as to 
fit it for a convenient circulating medium — say notes of five dol- 
lars and upwards. The circulation would probably be very consi- 
derable. 

An issue of such notes, to a moderate extent, and under pro- 
per regulations, would, in my opinion, do a great deal of good, 
and could not do harm — that is, provided other regulations arc 
adopted to give efficient protection to manufacturing industry. 
If such regulations are not adopted, a resort to paper money, 
under any regulations, will make bad worse. 

Having now made a survey of "the whole ground," and given 
an outline of the only plan which has occurred to me for pro- 
tecting and encouraging our national industry, I shall close the 
subject by a short view of the general effect which would be pro- 
duced on the " great interests of the nation." 



18 

First. By securing to American manufacturing industry tht 
use of its own market, the consumption of imported articles 
would be lessened, and room would be made for domestic arti- 
cles to the extent of 40,000,000 or 50,000,000 dollars. This 
would give immediate employment to many worthy citizens 
who are now pining in poverty and want, and the whole value of 
the labour expended upon the articles, to the extent of 20 or 
30,000,000 dollars annually, would be clear gain to the country. 
Secondly. It would secure the agriculturist in a market at 
home for his surplus produce, and afford him articles in exchange 
much better suited to his wants and habits than the general run 
of imported articles. 

Thirdlij. It would, by providing a very extensive field for 
employment, lessen competition, and secure to the American 
merchants and capitalists the exercise of a profession to which 
they are peculiarly fitted by their education and habits. But 
more than this — It would afford continual openings for giving 
employment to all classes of the mercantile community; it being 
well known that merchandise and manufactures are so intimately 
connected, that great facilities are afforded for changing from the 
one to the other, as circumstances may render expedient. 

Fourthly. To American ship owners, and sailors, it would 
give additional employment, by the augmentation of the coasting 
trade, and would very soon pave the way for a very extensive 
trade to Mexico and South America. 

Fifthlij. To those concerned in literature, the learned profes- 
sions, and the arts and sciences, it would be most beneficial, by 
creating a quick circulaticn of money, and putting it in the 
power of all the members of the community to avail themselves 
of the advantages of a liberal and polished education. It is well 
known of what importance manufactures are to chemical science, 
and they are also very important to mechanical science, and to 
hydrostatics and hydraulics. 

Sixthly^ and lastly. To the government of the country the ad- 
vantages are most obvious, particularly in the article of revenue, 
which would, by this system, be placed on a secure basis, not 
subject to be shaken by foreign agents, nor foreign contingencies ; 
while the whole revenue could be raised without a cent of inter- 
nal taxes. 

The question being one of pure national importance, it ought 
to be taken up and discussed as such, without being influenced 



19 

by any one class, or portion of the community. Great efforts 
have been made to enlighten the public mind on the subject, and 
the question now occupies a large share of public attention. Nu- 
merous petitions will be presented, and numerous opinions given, 
some of which will no doubt be dictated more by individual or 
local interest than by liberal feeling. But the question will be 
best decided by keeping one single object in view — that is — To 
SECURE TO American industry, in all its branches, the 

FREE USE OF THE AMERICAN MARKET, That doue, all W ill SOOn 

be well. Long neglected it cannot be ; but while it is, we are 
inflicting heavy stripes upon ourselves. Let us change our po- 
licy, and hereafter attend to our own best interests. American 
industry is proverbial. Let it only have " efficient protection" in 
all its branches, — and being already the most free and indepen- 
dent, — we will speedily become the most prosperous, and the 
most happy community in the world. 

Before bringing the subject to a final close, I beg leave briefly 
to advert to one branch of manufactures, with which I am inti- 
mately acquainted, and for which this country is peculiarly fitted 
- — that is, the cotton trade. This trade appears to me so very im- 
portant to the United States, that I am induced to submit the 
following calculation of the effects which would be pi'oduced by 
manufacturing the cotton of the United States, instead of ex- 
porting it. The calculation is made from the exports of cottoa 
iul818. 

Cotton exported in 1818. 

Sea Island, 6,457',835 lbs. valued at 59 cents, ^3,939,828 
Other kinds, 86,018,845 do. 33 do. 25,524,430 



Total value, - - ^31,514,258 

Suppose the whole manufactured into cloth, the waste in clean- 
ing the Sea Island would be about one-fifth^ and on other kinds 
one-seventh part. The Sea Island could be manufactured into cloth, 
say one half at 5 yards per lb. value to average 60 cents per 
square yard, and the other half at 6 yards per lb. averaging 80. 
The other kinds one half at 3 yards per lb. averaging 20 cents, 
and the other half 4 yards per lb. averaging 40 cents. 



20 

The result would be nearly as follows : 
Sea Island^ gross, 6,457,835 
Waste, 1,457.835 



Clean, 5,000,000 



One half, 2,500,000—5 yards is 12,500,000—60 cents, ^7,500,000 

Other half, 2,500,000—6 yards is 15,000,000—80 cents, 12,000,000 

Other kinds, 86,018,845 

Waste, 12,018,845 



Clean, 74,000,000 



One half, 37,000,000— 3 yards is 111,000,000— 20 cts. 22,203,000 

Other half, 37,000,000—4 yards is 148,000,000—40 cts. 59,200,000 

386,500,000 100,900,000 
Add printing, tambouring, sewing, and otherwise ornamenting 

these goods, ----.. 24,100,000 

§125,000.000 

Deduct the price of Cotton for 181S, 31,514,258 



Making a difference of - - - . . §93,485.742 

Though cotton was at the enormous high prices of 59 and 33 

cents per lb. 

To reduce it to the present rates the result would be, — 
Manufactured goods ..... 125,000,000 

Deduct the value of cotton at present prices, 40 and 16 cents 

per lb §16,594.355 

Making a difference of ..... §108,405,645 

The hands employed in the various branches of this manufacture, with the 
aid of machinery, would be about as follows — 





Men. 


Women and Children. 


Cotton cloth at 3 yards per lb. 


1100 


21,100 


4 do. do. 


3000 


41,800 


5 do do. 


820 


7,380 


6 do. do. 


2050 


14,350 


Printing, &c. 


2400 

9370 

n, and childrenj 


9,700 




94,330 


Total, men, wome 


103,700 


; of the manufactures over the raw 


material, 


§108,405,645 



Being upwards of §1000 for each person. 

The above calculation is made, keeping in view the present 
state of the cotton trade in the United States. When the trade 
has so far advanced as to have machinery as perfect as in £ng- 



21 

land, the same number of hands could produce manufactured, 
goods to the value of nearly three hundred millions of dollars. 

An allowance of nearly fourteen millions of pounds is made 
for waste ; but with perfect machinery nine-tenths of that could 
be wrought up in inferior goods, such as counterpanes, coarse 
calicoes, &c. 

Thus, it appears from the foregoing calculations, that if we 
would manufacture all our cotton instead of exporting it, we 
would make a clear national gain of above one hundred mil- 
lions OF DOLLARS, and that from the employment of about 9400 
men and 94,000 women and children ! ! 

It is calculated that at least 15,000 persons are either idle or 
unproductively employed at present in the single city and county 
of Philadelphia, so that above one-seventh pari of the whole labour 
necessary to produce an annual advantage of more than 100,000 c 
dollars is to be found, unemployed mark^ in this district only. 
This, if applied, would be an advantage to it of upwards of fifteen 
millions of dollars annually ! There is no exaggeration in this 
statement. It is deduced from plain facts, which no reasoning- 
can set aside, nor sophistry invalidate. The value of the cotton 
trade is well known in Britain, and when we look at the result 
of these calculations, we cannot wonder that a nation, so interest- 
ed^ should strain every nerve to hold a monopoly of it. We can 
easily account for the sophistical arguments used by that people 
to persuade other nations how very detrimental it is to engage in 
manufactures, while they pursue the manufacturing system them- 
selves with the greatest avidity; aye, and guard it with such 
jealousy, that they would not let another nation in the world 
manufacture a hob ?iail, if they could prevent it. But the scene 
is about to shift ?2ow, as regards the United States. The im- 
portance of the manufacturing system is NOW as clearly seen as 
if it were written with a sun beam, and the industry and mecha- 
nical genius of the United States will at no distant day produce 
as great an effect in manufactures generally, as in those branches 
of the arts which were not susceptible of being invaded and 
borne down in their infancy by foreign rivalship. 

Look at what American genius has achieved— 
It has twice conquered liberty from the most powerful nation, 

at arts and arms, in the world. 
It has reared a monument to independence that will last 

through endless ages. 



22 

It has provided an asylum for the human race, and formed a 

plan whereby every citizen may become a freeholder. 
It has beaten a powerful army of 12,000 men with 3600; the 

loss being about 1 to 36. 
It has brought to a high degree of perfection ship building and 

navigation. 

It has established such confidence in our naval power, that our 

brave tars can exclaim, "We have met the enemy, and they 

are ours." 

It has established and brought to maturity navigation by steam. 

It has established and brought to maturity paper money that 

cannot be counterfeited. 
And it has made many important improvements in various 
branches of agriculture, manufactures, and arts. 
It may be said — Aye, but America is indebted to other na- 
tions for some portion of that genius, and these improvements. — 
Granted. — And so much the better. It only proves, that where 
freedom dwells there will genius be attracted by kindred feel- 
ing — there she will freely associate with native genius; and 
there both will rise proudly pre-eminent. 

A nation possessing such genius, and such power, with such 
means of making fresh acquisitions to both, can, and must make 
itself FINALLY INDEPENDENT, by providing means of employ- 
ment for all its members, and supplying all its wants within 
itself. But it is confidently predicted, that the American nation 
will do more than this. She will, at no distant period, out-rival 
Britain as far in manufactures as she has done in some of the 
other arts.* It is not pretended, that she can do this in one, 
two, or three years ; nor is it necessary, she should. The 
great object is to make a beginning by " efficient protection." 
Let that be afforded by the present Congress, and manufac- 
tures will be speedily established to such an extent as will 
afford the means of employment to all the members of the Ame- 
rican, community, and restore a sound currency to the country. 
Let this protection be continued, and such is the writer's confi- 
dence in the genius, enterprise, and good management of his 
fellow-citizens, that he firmly believes the single city of Phila- 
delphia will, within eight years, through the medium of its ma- 
nufacturing industry, possess the means of drawing more specie 
in one year from Mexico and South America, than is at present 
in all the banks of the United States. At all events, after a full 



23 

examination of the subject he is proud to put his sentiments on 
record, and "howe'er time and chance may determine the issue," 
he is sure that they will remain a standing monument of the 
best wishes of a sincere friend to the country. 

JOHN MELISH. 
Philadelphia^ Ut Jan, 1820. 



APPENDIX. 



On the Balance of Trade. 

IT is generally admitted, that the Balance of Trade since 
the last peace has been against the United States. The result of 
every investigation clearly shews this, but as bills of exchange 
have not risen much above par, a considerable difference of opi- 
nion may exist as to the extent. The author of this letter, it will 
be seen, page 20, estimates it at more that 120 millions of dol- 
lars ; and he sees no reason to alter his opinion ; although it is 
admitted, that a considerable portion is lost by the furnishers of 
the goods, in sacrifices by auction sales^ and by bad debts. 

Since this estimate was formed, a report has been made in the 
Senate of the United States, which throws some additional light 
on the subject, and the matter is considered of sufficient import- 
ance to induce us to take another view of it. 

It is known, that at the close of the war, the American mer- 
chants had a considerable balance in Europe. It is not known 
how much, but it is presumed it would be estimated high enough 
at .... - S 10,000,000 

The estimate of the imports, formed from the du- 
ties actually paid, deducting goods re-exported, 
is, in round numbers, (see page 8, of the forego- 
ing letter,) - . - - 426,750,000 
The amount of exports of domestic produce, from 

official returns, is in round numbers, - 303,900,000 

And it is estimated, in the aforesaid report to the 
Senate, that the goods admitted duty free 
amount to 5 millions per annum. 
The amount for 5 years is, - g 25,000,000 
Of which are re-exported 1 million 

per annum, in 5 years, - 5,000,000 

20,000,00^ 

To which we may add goods smuggled into the 
country, or entered at less than the value, at 5 
millions per annum, _ - . 25,000,000 



26 

Before proceeding to form a fresh estimate from these data, 
we may notice, that the duties actually paid into the treasury 
from 1815 to 1818, inclusive, deducting all drawbacks, and other 
charges, except the expenses of collection, amount to, 

S 104,468,946 
3 First quarters of 1819, - §15,604,081 

Last quarter, estimated at, - 4,000,000 

— — 19,604,081 



S 124,073,027 
Which being considerably above one-fourth part of the esti" 
mate of the goods, that estimate cannot be too large. 

Now for the application — 
Imports paying duties, 8426,750,000 

Deduct on the portion paying ad va- 
lorem, l^per cent, or S234,500,000 23,450,000 

S403,300,000 

Goods admitted duty free, - - 20,000,000 

Goods smuggled or entered at less than the value, 25,000,000 

Total imports, S 448,300,000 

Exports, - - - S 303,900,000 

American property abroad at the 

peace ... 10,000,000 

313,900,000 



Leaving an apparent balance against the country of. Si 34,400,000 

So that ample allowance may be made for freights, charges, 
and many other contingencies, ani yet the balance against us 
will be more than 120,000,000 of dollars. It is firmly believed, 
that it is fully equal to all the duties paid into the treasury since 
the peace ! ! 

Viewing this picture we cannot wonder at the embarrassed 
state of the country, in all the various branches of trade and 
fiiiancec 



27 



Observations on the Former Letter, 

IT is believed, that the foregoing calculations aiFord decisive 
evidence that the system in which we have been involved has 
brought a balance against the United States, great in extent, and 
ruinous in its consequences ; and this circumstance will probably 
add weight to the former letter, in which some of the conse- 
quences were predicted. On this account it may be of import- 
ance to advert to a few more of the ^ac^^ contained in it ; and to 
correct some errors in the reasoning-. 

In page 9, the situation of the country, in consequence of the 
loss of its industry, was adverted to as follows : 

*' The situation in which we stand is a very singular one indeed. Possessing a chosen 
country, with room for our descendants io the thousandth and thousandth generation— 
with a fine soil, a fine climate, ample store of minerals, of fuel, and of raw materials, for 
every species of manufacture — with a country better adapted for internal iiavigaiion and 
commerce, than any other that I know of in the world — and inhabited by a race of people 
inferior to none for intelligence, sobriety, and industry. Yet with all these imposing 
advantages, we are cursed with a species of foreign commerce which, like a canker worm, 
is gnawing out our vitals. Those engaged in it are impoverished. Failures innumerable 
have taken, and are taking place ; and the commercial character of the country is sunk 
and degraded in consequence. The surplus wealth of the country is drained off to support 
our rivals in Britain ; and in many districts of the country, a gi-eat portion of the citizens 
are at a loss for employment! — ^Yes — in this very country — this industiious population — 
are absolutely at a loss for something to do. It is really painful to contemplate the pic* 
ture ; but contemplate it we must ; for in no other way can be do justice to the subject. 

This melancholy picture pervades the country throughout, less or more ; but it is very 
prominent on the Atlantic coast, and particularly in and about the great commercial 
cities. It is calculated that in Philadelphia city and county, at least 15,000 people, all 
able and willing to work, are either idle, or occupied in unproductive labour. The pro- 
portion along the seaboard is probably equal to this, through its whole extent ; and half 
this proportion may be the estimate for all the other parts of the country. 

This will give along the Atlantic coast, about . - - ■ 150,000 

And in other parts •--._.. 350,000 

Making a population in all, who have either nothing to do, or are engaged in 

unproductive labour, of ...... 500,006 

Now by looking at the last census of the United States, we will see that the whole 

population is..-----. 7,239,903 

0f these, the free white males, between 16 and 45, amount to - - 1,119,944 

Females -.. ...... 1,105,824 

Total 1 - 2,225,768 

«' This we may assume as the number of inhabitants in the United States fit for produc- 
tive labour; and we find, that if the estimate of those who are rendered unpn'ductive by 
existing circumstances be correct, it amounts to nearly one-fourth part of the -whole! — 



28 

Allowing 3 dollars per week as the wages which these people could earn, if properly em. 
ployed, it would amount to 1,500,000 dollars per week, or 73,000,000 dollars annuallj'; 
and allowing double that sum as the value of their labour, it would be 3,000,000 per 
week or 156,000,000 annually, to be added to the national stock, more Uian what is at 
present; to say nothing of the market it would create for cotton, for wool, for uon, for 
wood, and other raw materials ; the active spring it would give to every species of indus- 
try, particularly in the internal demand for the products of the farmer; — and the active 
impulse it would give to internal commerce." 

The subject was again resumed as regards the Philadelphia 
district, page 27, as follows : 

« We have estimated the number out of employment, in the district at present, at 
15,000. It is believed that it is greater, but let us take that estimate. The wages of 
15,000 people, at 3 dollars per week, is 45,000 dollars weekly, or 2,340,000 dollars per 
annum. Then the work of these people is worth double that sum, say 90,000 dollars per 
week, or 4,680,000 dollars per annum." 

This estimate is amply corroborated by the report of the com- 
mittee appointed to make inquiry into the situation of the manu- 
factures of the city of Philadelphia and its vicinity, dated the 
2d October last j from which the following is an extract : 

« In the article of wages alone, there is in thirty branches of manufacture, an actual 

annual loss of - * §2,366,935 

« Supposing the materials only equal to the wages they amount to, 2,366,935 

*' Annual amount of productive industry smothered by our present system, §4,733,870 

"In this city and vicinity, there are, it appears, 7,288 persons thrown idle, and it is far 
from unreasonable to presume, that on every person thus deprived of employment, at 
least two other persons depend. Hence it follows that no less than 21,864 persons are 
bereft of maintenance in thirty branches of business, in one single district of no great ex- 
tent, not 40 miles in diameter." 

In pages 21 and 22, the probable fall of produce and conse- 
c^uent reduction of our exports, were adverted to as follows : 

«' The amount of our exports will probably be less by twenty millions of dollaps than it 
has been. By recent accounts from England, it appears that the ports are shut against 
provisions. This is the way that the business is always managed there. Every circum- 
stance is made to bend before what they conceive to be their own interest. The whole 
of their regulations are calculated to make all the woikl subservient to their policy, and 
there is no reciprocation, except what occasionally arises from their own wants. This 
measure will materially affect the interests of the northern, middle, and western states; 
and measures are in operation that will very soon aff< ct the southern, and south-western. 
By recent advices from Liverpool, it will be seen that the English nation is using every 
eftortto raise a supply of cotton in their own colonies, and dependencies. The imports of 
cotton from India for'the last nine months amount to upwards of 90,000 bales, and such 
is the avidity with which the East India Company are pursuing this trade, that it is pro- 
bable they will soon be able to supply the whole consumpt of the country from thence, 
from the West Indies, and from South A-.erica. Then cotton will decline in price as it. 
did before the war ; and the chance is that the amount of our exports will be lowered one 
half. 



29 

" Here tlien is tne picture which our foreign relations, as reprds imports and cxporls 
(0 and from Britain, must assume twelve or eighteen months hence, unless Congress re- 
gulate the matter by legislation in the interim." 

The calculations in the former letter, pages 20 and 22, relative 
to the effects of our system of foreign commerce, are correct in 
substance, but not in form. 

It was supposed that if we continued to import greatly beyond 
our means of paying, it would operate to impose a tax upon im- 
ports to a great extent, and bills of exchange would rise. 

A most ruinous loss has been sustained by the trade gene- 
rally ; but a great part of it being sustained by sacrifices at auc- 
tion, and bad debts, it has consequently been borne principally 
by the dealers in the articles. The goods being forced into the 
market could not rise in price, but the result has been to depress 
every kind of industry. 

Bills of exchange have not risen owing to the following cir- 
cumstances. 

1st. The demand for United States stock, and bank stock, in 
London. 

2d. The high price, and consequent speculation^ in some of 
the principal articles of American produce, in 1818 ; throwing a 
great quantity of bills of exchange into the market. 

3d. The immense losses sustained on imported goods hy forced 
sales and bad debts ; lessening the remittances to Britain. 

In consequence of the quantity of foreign goods which remains 
on hand, (a considerable portion of which will probably be re- 
exported) and the numbers of the mercantile community who 
are thrown out of employment, and must live upon the stock, 
bills of exchange do not rise now, nor is it probable they will 
rise hereafter, at least for some time. 

It is so much in favour of the exchange of the United States, 
that a considerable portion of the loss has been sustained by those 
who furnished the goods, but it is no way creditable to us ; and 
it is unprofitable even to get goods in a present, if people are idle 
at home who could make them. 

The supposition that we would have only about thirty millions 
to export was incorrect. We will, under any circumstances, ex- 
cept non-intercourse or war, have probably near fifty millions, 
(see letter, page 10); and our imports for domestic consumption 
cannot much exceed that sum. 

E 



30 

There are some errors in page 16 of the former letter, relative 
to the rates of duty on various articles in England. 



'Book% 



What was stated at 22 shillings— it should be - 36^. 
Woollen cloth 21 - should be - 36*. 

■ Of boodc , 5/. per cwt. - - - - 6/. 165. 6d. 



These errors show that there vv^as no desire to lay an exagge- 
rated state of the case before the country. Let the British go- 
vernment be what it may, it certainly protects national industry 
at home, with all its heart and with all its soul. This will appear 
very clear from the following contrast. 



American protection. 


British protection. 


Manufactures of Brass, 


20 per cent. 


59 1-2 per ct. 


Cdtlon, . . - 


25 


85 1-2 


Copper, - . - 


25 


59 1-2 


Glass, - - 20 


and 30 


114 


Linen, - . , 


15 


142 1-2 
Besides a bounty ou 
exportation. 


Silk, 


15 


Prohibited. 


(^liiiia and Earthen Wares, 


20 


79 


Hats, Caps, and Bonnets, 


30 


85 1-2 


Woollen Hats, 


SO 


85 1 -2 


Stockings, cotton and woollen, 


20 


85 1-2 


Watches, &c. 


7 1-2 


59 1-3 


Goods, \\ ares, and Merchan- 






dise, not enumerated. 


15 


- 59 1-3 


Oil of Vitriol, 


7 1-2 


100 


Ale, Beer, and Poi-ter, per gall. 


10 cents. 


41 1-C cents. 


Woollens and worsted goods, pei 


r 




square yard. 


25 cents. 


§7 55 



Whenever the American nation sees the necessity of granting 
such "^tfRcient protection to manufactures" as is done by the 
British, there will very soon be ample employment for our citi- 
zens, and ample capital in the United States. 



CONCLUSION. 



If the views exhibited in the foregoing pages are correct, it 
follows that a new system must take place in the United States, 
and from many considerations the author is inclined to believe 
that it is already begun, and will soon make rapid progress. In 
the mean time he takes this opportunity to suggest to those gen- 
tlemen who have the management of Banking Institutions, the 
propriety of bending their attention to the subject. On taking a 
view of foreign commerce, it will be found that it must be, for 
some time at least, very limited. The whole extent of it, out- 
ward and inward, will not probably exceed ninety millions of 
dollars ; and the profits upon it, including the carrying trade, 
estimated at 10 per cent, would be only nine millions of dollars. 
This divided among 60,000 persons, would only afford each 
about three dollars a week, or 150 dollars a year. We have 
elsewhere shown that 100,000 persons engaged in manufac- 
tures are capable of producing a clear annual gain of more 
than 100,000,000 dollars, being above 1000 dollars each a year. 
If such are the decisive advantages that result from internal in- 
dustry properly applied, it is then both the interest and the duty 
of monied institutions to support it by all prudent means in their 
power. Money lent to support internal industry, if properly ap- 
plied, provides an accumulating fund to support the lender. It 
does not leave the country. It brings no exchange against the 
banks — it circulates among ourselves, and, if properly used, 
proves a blessing both to the giver and the receiver ; whereas 
what is lent to support foreign adventures of imported goods, 
operates to drain off the specie capital ; and these goods, if im- 
ported to excess, being forced into the market, operate to pull 
down the manufactures of domestic fabrics, without advancing 
the interest of the merchants. 

The author of these pages is by no means a foe to foreign 
commerce — on the contrary he wishes to see it encouraged by 



32 / 

every means consistent with the welfare of society. But being 
decisively of opinion that it must, by the force of circumstances, 
be confined within very narrow limits for some time, he wishes 
to see it regulated in such a manner as to give life and efficacy 
to internal industry. The difficulty is in making the change. 
When once it is fairly accomplished, our manufactures will 
afford new avenues of commerce, much more extended, and 
much more beneficial to the country, than what exists at pre- 
sent. 



NEW WORKS 

In Preparation by John Melisk 



MAP OF THE UNITED STATES, 

WITH THE 

Contiguous British ^ Spanish Possessions j 

INCLUDING 

Mexico and the West India Islands. 

DESCRIPTION 

Of the United States and Contiguous Countries, 

Illustrated by a number of 
MAPS AND STATISTICAL TABLES. 

Price of the Work 12 dollars. 



MAP OF THE WORLD, 
QJ\r MERC^TOWS PROJECTWJ^: 

With all the Recent Discoveries. 

DESCRIPTION OF THE WORLDj 
ILLUSTRATED BY MAPS AND TABLES. 

Price of the Work 12 dollars. 



FOR SALE, ' *^ * ® 



A General Collection of Maps, Charts, & Geographica 

Works. 








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